Introduction to Zeekr’s Potential Delisting
China’s Geely Auto, the parent company of Zeekr, a luxury electric vehicle (EV) manufacturer, has announced plans to take Zeekr off the New York Stock Exchange (NYSE) just one year after its initial public offering (IPO). This move comes amidst rising tensions between the US and China, with the Trump administration considering the removal of Chinese companies from American stock exchanges as part of a broader trade war.
Reasons Behind the Delisting
The decision to take Zeekr private is largely seen as a strategic move by Geely to protect its investment and avoid potential geopolitical complications. With Geely already owning 65.7% of Zeekr through its founder Li Shufu, the company would only need to pay out approximately $2.2 billion to acquire the remaining shares. This takeover would allow Geely to shield Zeekr from the intense competition in the EV market and provide the necessary support for its growth.
The Offer Details
Geely has offered to pay $25.66 per Zeekr American Depository Receipt (ADS), which is about 14% higher than Zeekr’s Monday afternoon closing price. This values the company at $6.5 billion. Alternatively, ADS holders can choose to receive 12.3 newly issued Geely shares per ADS. This offer provides a significant premium to Zeekr’s current stock price, making it an attractive option for shareholders.
Zeekr’s Current Performance
Although Zeekr has not yet released its first-quarter results, the company has reported delivering 125,250 vehicles across its two brands, Zeekr and Lynk & Co, in the first four months of 2025. This indicates a strong start to the year, with the company poised for further growth.
Partnership with Waymo
Zeekr is currently collaborating with autonomous vehicle company Waymo to develop a purpose-built robotaxi for large-scale deployment in the US. While there is no confirmation on how Geely’s takeover would affect this partnership, Waymo has announced plans to integrate its self-driving system into the Zeekr vehicle at its new Arizona facility later this year. This partnership has the potential to drive innovation and growth in the autonomous vehicle sector.
Conclusion
In conclusion, Geely’s decision to take Zeekr private is a strategic move to protect its investment and avoid potential geopolitical complications. With a strong offer on the table, Geely is well-positioned to acquire the remaining shares and provide the necessary support for Zeekr’s growth. As the EV market continues to evolve, Zeekr’s partnership with Waymo and its strong delivery numbers make it an exciting player to watch in the industry. Whether or not the delisting affects Zeekr’s partnerships or growth trajectory, one thing is certain – the company is poised for a bright future under Geely’s ownership.
